Bulls n Bears Daily Market Commentary : 02 October 2019

Wed Oct 2 21:49:53 CAT 2019

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Bulls n Bears Daily Market Commentary : 02 October 2019

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$5,025,535.22 with foreign buys at ZWL$ 6,396.00 and
foreign sales were ZWL$ 530,520.25 Total trades were 167.

The All Share recovered 2.09 points to close at 233.72 points. OLD MUTUAL
LIMITED advanced by $4.4436 to $29.9724, AFRICAN DISTILLERS rose by $0.3300
to $1.9800 and PADENGA  was $0.2264 stronger at $2.7264. DAIRIBORD   also
increased by $0.0475 to $0.4200 and INNSCOR was $0.0357 firmer at $3.1100.

Gains were offset by losses in SEEDCO LIMITED  which dropped $0.0941 to
$2.0039, FIRST MUTUAL LIMITED  eased $0.0460 to close at $0.2100 and

CASSAVA SMARTECH   traded $0.0458 lower at $1.6573. DELTA CORPORATION   also
decresed by $0.0280 to settle at $3.9764 and AFRICAN SUN   was $0.0200
weaker at $0.4800.

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  Global Currencies & Equity Markets

Uganda

Ugandan shilling slightly stronger, liquidity injection could trim gains

(Reuters) - The Ugandan shilling traded slightly stronger on Wednesday but
was seen likely to reverse gains on the back of a local currency liquidity
injection by the central bank via a reverse repo.

At 0953GMT commercial banks quoted the shilling at 3,675/3,685, compared to
Tuesday’s close of 3,680/3,690.

South Africa

South Africa's rand weakens as global recession fears weigh

(Reuters) - South Africa’s rand weakened for a second straight session on
Wednesday, after dismal U.S. manufacturing data raised fears of a global
recession and underscored the damaging effects of the prolonged trade war
between Washington and Beijing.

At 0630 GMT the rand was 0.26% weaker at 15.3750 per dollar from an open of
15.3300, extending losses for the month to nearly 1.7%.

Data on Tuesday showed U.S. factory activity shrank in September to its
weakest in over a decade, ratcheting up fears that the U.S.-China trade war
is hobbling the world’s largest economy.

The figures followed equally weak euro zone factory data earlier in the
week, with the rising chances of a global recession souring risk appetite as
investors fled for safety.

Locally, South Africa’s seasonally adjusted Absa Purchasing Managers’ Index
(PMI) sank to its lowest level in a decade in September, on weak demand
linked to fears over slowing domestic and global growth.

With no major economic releases due in the session, the rand is expected to
drift weaker, with the bearish backdrop expected to push the unit close to
the 15.50 mark.

Bonds were flat, with the yield on the benchmark government issue due in
2026 steady at 8.355%. 

       <mailto:info at bulls.co.zw> 

Global stocks fall to lowest in month on U.S. growth worries

(Reuters) - World equity benchmarks hit their lowest levels in a month
Wednesday as signs of a slowdown in U.S. economic growth and weak earnings
in Europe fanned fears that the U.S.-China trade war could push the global
economy into a recession.

A measure of U.S. manufacturing released Tuesday fell to its lowest level in
more than 10 years, removing one of few remaining bright spots in the global
economy and come just as Europe is seen as close to falling into recession.

MSCI’s gauge of stocks across the globe shed 1.71%, following broad declines
in Europe that pushed benchmark indices to their lowest levels in a month.
The FTSE 100 index slipped 2%, the largest drop across European regions.

On Wall Street, the Dow Jones Industrial Average fell 547.48 points, or
2.06%, to 26,025.56, the S&P 500 lost 58.77 points, or 2.00%, to 2,881.48
and the Nasdaq Composite dropped 142.85 points, or 1.81%, to 7,765.83.

Selling was triggered after the Institute for Supply Management’s (ISM)
index of factory activity, one of the most closely watched data on U.S.
manufacturing, dropped to the lowest level since June 2009.

Markets had been expecting the index to rise back above the 50.0 mark
denoting growth but the index dropped 1.3 points to a reading of 47.8 last
month.

Concerns about the global economic outlook pushed investors into the
perceived safety of bonds. Benchmark 10-year notes last rose 16/32 in price
to yield 1.5889%, from 1.644% late on Tuesday.

Euro zone bond yields inched up after another speech from outgoing ECB chief
Mario Draghi calling for fiscal stimulus to boost the region’s sluggish
economy.

Gold rose to $1,486.46 per ounce from a two-month low of $1,459.50 hit on
Tuesday on the back of a robust U.S. dollar.

Weak economic data weighed on oil prices, though U.S. crude was supported by
industry data that showed an unexpected fall in inventories in the United
States.

Brent crude futures were last down 1.7% at $57.87 a barrel, while U.S. West
Texas Intermediate (WTI) crude fell 1.6% to $52.79 per barrel.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold climbs over 1% as weak U.S. data feeds economic fears

(Reuters) - Gold prices rose more than 1% on Wednesday as a report showing
weaker-than-expected hiring by U.S. private employers stoked economic fears
the day after another report showed weak manufacturing activity in the
world’s largest economy.

Spot gold jumped 1.6% to $1,502.66 per ounce as of 1:58 p.m. EDT (1758 GMT).
A day earlier, the session low of $1,458.50 was the weakest in nearly two
months, but prices bounced up as much as 1%.

U.S. gold futures settled up 1.3% at $1,507.90 an ounce.

The ADP National Employment report on Wednesday showed U.S. private
employers hired fewer workers than expected in September, pointing to a
labor market slowdown.

A day earlier, the Institute for Supply Management (ISM) reported that U.S.
manufacturing activity slumped to a more than 10-year low in September.

World equity benchmarks hit their lowest levels in a month as signs of a
U.S. slowdown and weak earnings in Europe fanned fears the U.S.-China trade
war could push the global economy into a recession. The dollar dropped
against the euro and yen but the dollar index, measuring the greenback’s
value against a basket of currencies, was little changed.

The weak data bolstered expectations for another interest rate cut by the
U.S. Federal Reserve. This would reduce the opportunity cost of holding
non-yielding bullion and should also weigh on U.S. yields and the dollar, in
which gold is priced.

Investors await the next Fed meeting later this month. The Fed cut interest
rates in September for the second time this year.

On Tuesday, President Donald Trump said interest rates were “too high” and a
strong dollar was hurting U.S. manufacturers.

Citing the stock market, the ADP employment report and other factors, Gero
said, “gold is probably going to be a little more stable.”

Silver gained 2.3% to $17.62 per ounce. Platinum was up 1.5% to $889.44 an
ounce, while palladium rose 2.1% to $1,686.98. 

INVESTORS DIARY 2019

Company

Event

Venue

Date & Time

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DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
Faith Capital (Pvt) Ltd for general information purposes only and does not
constitute an offer to sell or the solicitation of an offer to buy or
subscribe for any securities. The information contained in this report has
been compiled from sources believed to be reliable, but no representation or
warranty is made or guarantee given as to its accuracy or completeness. All
opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
the securities of more established companies. Neither Faith Capital nor any
other member of Bulls ‘n Bears nor any other person, accepts any liability
whatsoever for any loss howsoever arising from any use of this report or its
contents or otherwise arising in connection therewith. Recipients of this
report shall be solely responsible for making their own independent
investigation into the business, financial condition and future prospects of
any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and sourced from third parties.

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